8-KRegulation FDExhibits & Filings

AT&T INC. 8-K Report, Regulation FD Disclosure (Mar 3, 2023)

Filed March 3, 2023For Securities:TT-PCTBBT-PA

Summary

AT&T Inc. (T) has filed an 8-K report on March 3, 2023, to disclose a change in its segment reporting methodology, effective for the first quarter of 2023. The company will no longer allocate prior service credits to individual business units. Instead, these credits will be recorded as other income on the consolidated income statement. This change is primarily a housekeeping matter with no impact on consolidated operating income or EBITDA. However, it does recast historical segment reporting, reducing reported operating income and EBITDA for the Communications segment by approximately $2.4 billion in 2022 and $2.1 billion in 2021.

Key Highlights

  • 1AT&T is changing its segment reporting for prior service credits starting Q1 2023.
  • 2Prior service credits will now be recorded as 'other income' on the consolidated income statement, not within business units.
  • 3This change has no impact on AT&T's overall consolidated operating income or EBITDA.
  • 4Historical segment reporting (2022 and 2021) has been recast to reflect this change.
  • 5The Communications segment's operating income and EBITDA were reduced by approximately $2.4 billion in 2022 and $2.1 billion in 2021 due to this recast.
  • 6The recast also impacts the 'Corporate and Other' segment to reflect a corresponding increase.

Frequently Asked Questions

AT&T is modifying its segment reporting to no longer allocate 'prior service credits' to its individual business units (like Mobility, Business Wireline, Consumer Wireline). These credits will now be recorded as 'other income' on the consolidated income statement.

No, AT&T explicitly states that this change has no impact on its consolidated operating income and consolidated EBITDA. It's a change in how certain credits are presented within segment reporting, not a change in overall financial performance.

AT&T is recasting historical segment data for 2021 and 2022 to provide investors with a consistent view under the new reporting methodology. This allows for a like-for-like comparison going forward.

The recast reduces the reported operating income and EBITDA for the Communications segment. Specifically, it decreased the segment's income by approximately $2.4 billion in 2022 and $2.1 billion in 2021. The 'Corporate and Other' segment will show a corresponding increase.